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Because one is born every minute (even if one is ineligible for a mortgage with JPM).
h/t nolsgrad
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The average kid going to graduate university with what $50k in student loans.
Get what job?
Form what new family?
And buy that first home when?
Fucktards
The Morgue should price their report in silver if they really wanted to get a laugh. Oooor wait, that's not funnay!
These two are either total fuckwits or thieving liars
Or long a bunch of foreclosures they need to sell. But, you'll have to get your mortgage from B of A.
Depreciating Items - Yes houses depreciate - they rot, decay crack and leak - and as such are never an investment they are at best a discretionary purchase which ties you to one spot.
Renting is still cheaper than Buying when you add all ownership costs and the bonus is you keep your cash liquid if you need to move for work.
I had to move 2 years ago - could'nt sell so rented it out. It has become a Millstone around my Neck. Costs of maintaining and ownership/ insurance ect has risen 7% pa and rent increases won't cover all of it. . Cash flows out but if you must have a nest, never regard it as an investment
Correct. Its not an investment, as folks thought during the bubble. Its a home and a homestead. I picked up a 4yo ranch on 3ac. for $45k last year. The panicking bank lowered their ask to 40 before I could close.
I'll have it paid off in four more years. Then screw what its worth. It'll be mine (as long as I can pay the property taxes).
The garden is built. The orchard is planted. The rabbits are breeding like, well, rabbits. A few more physical assets to procure, and I can say FU when it all collapses. I am converting FRNs into physical as fast as I can.
When mortgage rates start rising (which they will) house prices will sink even more then Shiller's 30% further plunge prediction.
Just as we must sometimes take our losses on other items (stocks, bonds, etc) some people will need to take a loss on their house. No difference.
The USA drove up house prices with cheap credit....and leveraged that by opening the Mexican border and then giving a nice big mortgage backed by Freddie to all those illegal immigrants. Good plan.
Now they want to tear our financial system to pieces to protect those still inflated house prices. Prices are still too expensive in most places where people really need to live.
Perhaps they just changed the date on one of their 2007 reports? Har...
JPM just lost any remaining credibility with me.
The whole shitbang is based on implied mean reversion toward historical means. Yet no effort at all is spent on showing why it would revert to mean. This is the typical bullshit of financial advisers who used to taunt 8% return on DJI. Idiots never learn, therefore scumbags never change.
If they offered me a loan that would shrink propertionally to the value of my house I might buy something...they are just doing 'their part' to stimulate the housing market...as well they should. How big is the shadow inventory they are sitting on? How many more of their loans are in distress or have defauted? And, as housing prices continue to erode, what are their forecasts for continued foreclosure losses? They are finally starting to feel the pain that they helped create. I hate JPM Chase and I hope the biggest VampireSquid of all goes down!
I'll take some houses off their hands, at a bulk rate (say, 20 cents), throw them in a REIT, and rent the fuckers out. There's a shortage of single family home rentals. A big shortage. The problem is the banks don't want to take the hit. They will, eventually, have to take the hit, of course. Housing prices aren't going to come back up until they clear out all the crap. They won't sell the crap until housing prices come back up....and round and round we go.
What a beautiful sell side brochure. Tell me was that printed on "bone white" paper?
Dis: Bought some rez RE last month.
Ahem
Logic instead of emotion...
That's a good one
How about: Stick it up your Magnetar Banksta Bitch!
I loved the crack shack or mansion...I hit crack shack every time but once!!...got a low score> Tells you where gold is going to doesnt it?
I know from daily experience in our home building division that the market is in "stall" mode for the most part, and I agree there there is still is demand, even if it is only "theoretical" - people want to move out of tiny apartments and live in bigger houses, and the notion of owning (I almost said "owing") is still alluring, even if the math and fundamentals are iffy. However, these low rate mortgages are very difficult to get, and if you are a boomer who wants to move and downsize, you are pretty much stranded, especially if you are underwater, as many, many are between their firsts and HELOC seconds. So, paralysis. This essay offers no insight into what I see as intractable problems that for quite a while will prevent this predicted rebound in residential real estate: valuations not moving up - at best sideways (and ZIRP-caused commodity inflation will not affect RE values anytime soon), financing is hard to get, underwater mortgages. There are many markets that do not have the so-called "foreclosure-oversupply" problem, so that factor is regional/local only - think AZ, FL, NV, CA and a couple other states and that's about it. But to say that the "oversupply" in these "sand" and other states is dragging the market down nationally is silly - it is only a regional/local factor in the market. A house in AZ does me no good if I live and work in NY.
A bout of rampant, 70s style inflation would clean up this mess, by raising the valuations. But I don't see that coming.
We've moved our efforts into land development in the Northeast. Getting the lots ready for when the market comes back at a normal pace, which is north of where we are, and way south of where it was in the bubble era. The land is not cheap (these authors sugggest it is worth "next to nothing," even as they observe that no one is selling for that much), but prices have normalized, and as they say, they're not making anymore of it. Location, location, location. Very true in RE.
The helicopter is now a bulldozer.
GET A LOAD OF THIS:
"Given all this, why have home prices not already begun to recover?
Part the problem is simply one attitudes and expectations. In a recent poll just 13%
Americans expected the price their home to go up in the next year, and just 36% thought
it would go up over then next ve. Unfortunately, this poll wasn’t conducted prior to 2009"
Attitude? The Dr forgot what he wrote 5 pages above "home equity has fallen from $13.5 trillion
to $6.2 trillion, a 54% decline."
" Unfortunately, this poll wasn’t conducted prior to 2009" " Hardy har har, really funny Dr. That would have prevented JPN from selling mortgages to unqualified home buyers??? You gotta be s**n me!